Question: 4. Suppose that the utility function is u(c, () = log(c) - e (a) Find the equation of an indifference curve given a level of

4. Suppose that the utility function is u(c, () = log(c) - e (a) Find the equation of an indifference curve given a level of utility I. (b) Find the Marginal Rate of Substitution. (c) Show the optimal consumption-labor choice using a plot with c in the y-axis and { in the x-axis. (d) Find the optimal amount of consumption and leisure assuming that h = 1 and T = T = 0

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The quality of the argumentation

The status rule: We tend to have more confidence in information presented by someone who has a relatively high status and rank in society than by someone who hasnt.

The spatial rule: The closer spatial proximity we have to an event, the more importance we will attach to it.